Canberra's real estate agents are saying a dip in house prices was the correction we had to have, but warned that if the Reserve Bank did not drop interest rates, the slide could continue.
Last night, agents played down a 1.4per cent drop in ACT house prices during the last quarter.
Principal of LJ Hooker Tuggeranong Mario Sanfrancesco said the market might have been slightly inflated.
''It was a slight correction after 36 months of phenomenal growth,'' he said.
After a number of interest rate rises earlier in the year, buyers had been more sensitive and conscious of prices. ''The statistics reflect that,'' he said.
Mr Sanfrancesco predicted house prices would not continue to fall.
''There has been talk of interest rates going down, and I think it's more likely we'll see some growth.''
Peter Blackshaw, of Blackshaw Real Estate, said if the Reserve Bank did not drop rates the fall ''could gather momentum''.
''It's what the Reserve Bank wished for. The next move should be a small rates cut or momentum could take the economy down.''
ACT House prices over the past year were up 7.2per cent. Ewa Kretowicz
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